The Canadian used wholesale auto market was down -0.29%, according to Canadian Black Book. The 2017-2019 average was -0.23%. The Canadian wholesale market for used cars declined, down -0.33%, and trucks were also down more from last week at -0.25%.
Only one segment of the car market made gains, with sporty cars up 0.53%. All other segments declined. Near luxury cars were down the most, at -0.87%, followed by luxury cars, down -0.80%, and full size cars down -0.52%. Premium sporty cars were down -0.33%.
For trucks/SUVs, all the segments experienced decreases except for full size vans (up 0.19%) and minivans, which were even from last week. The average decrease was -0.52%. Compact vans declined the most, down -1.00%, followed by sub-compact luxury crossover/SUVs were down -0.80%, compact crossover/SUVs were down -0.47%.
The average listing price for used vehicles decreased week-over-week, as the 14-day moving average declined to $36,600. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots. The overall decreases were slightly larger than the historical average. Supply remains low with high demand for more recent and clean condition vehicles on both sides of the border. Upstream channels continue to tap supply before it can be available to wholesale markets.The US market exchange rate remains favourable for exportation, leading to a continuous stream of vehicles south across the border. “Supply remains low while demand is high on both sides of the border. Upstream channels continue to tap supply before it can be made available at physical auctions.”
CBB industry news reports the yield on Canada’s 10-year government bond rose past the 3.35% mark in February, tracking the rise for global bond yields to a three-month high as strong economic data and hawkish signals by Fed officials ramped up expectations of higher interest rates for longer by the US central bank. Canada’s annual inflation rate fell to 5.9% in January of 2023, the least since February 2022 and below market expectations of 6.1%, slowing from the 6.3% in the previous month amid base-year effects.
The ongoing battle for semiconductors shows the situation improving but not for all OEMs as the latest numbers on shortages find another 35,000 vehicles cut from global production this week.
A new KPMG Poll shows results for a greener alternative transportation in Canada with 6 in 10 consumers planning to purchase a “greener” vehicle in 5 years or less, but likely not following through citing higher financing costs, delays in delivery, and concerns over battery range and charging reliability as key barriers to entry.
